CFTC Publishes ANPRM Seeking Public Comment on Prediction Market Regulation, USA, March 2026

On March 12, 2026, the Commodity Futures Trading Commission published an Advanced Notice of Proposed Rulemaking (ANPRM) in the Federal Register seeking public comment on whether to amend or issue new regulations governing event contracts traded on prediction markets. The ANPRM was initiated by Chairman Michael S. Selig and represents the CFTC's formal commencement of a potential rulemaking process under the Commodity Exchange Act. The comment period is set at 45 days from publication in the Federal Register. No new rules have been proposed or finalized; the ANPRM is a pre-rulemaking step to collect information.

The ANPRM is grounded in the CFTC's authority under the Commodity Exchange Act (CEA), 7 U.S.C. § 5(d), which requires designated contract markets (DCMs) to comply with "core principles" established by the Commission. Section 5c(c)(5)(C) of the CEA authorizes the CFTC to prohibit transactions in event contracts that are "contrary to the public interest" in categories including activity that is unlawful under federal or state law, involves elections or political outcomes, or involves gaming. The ANPRM asks questions about the proper application of these core principles and the public interest standard to prediction market contracts.

Prediction market platform operators, DCMs currently offering event contracts, and applicants planning to list event contracts must submit written comments to the CFTC's Public Comments Portal within 45 days of Federal Register publication. Comments that address cost-benefit considerations, the scope of the public interest exception, and the types of event contracts that should be permitted or prohibited will be most relevant to shaping any subsequent NPRM. Operators of non-registered platforms that facilitate binary-outcome contracts pegged to real-world events should assess whether their products qualify as event contracts under CEA Section 1a(19) and thus require DCM registration.

The ANPRM does not propose or finalize any rule change; the CFTC will use comment-period responses to inform any future NPRM or other agency action. The CFTC's concurrent litigation against Arizona, Connecticut, and Illinois (CFTC v. State of Arizona et al., filed April 2, 2026) operates on a separate track and does not depend on rulemaking outcomes. The comment deadline — 45 days from Federal Register publication of the ANPRM — applies to all interested parties. Failure to comment during the ANPRM stage does not preclude participation in any subsequent NPRM comment period.

Our firm advises on CFTC rulemaking participation, prediction market product design, and DCM compliance, and maintains a dedicated partnership network for event-contract platforms and fintech operators. We invite inquiries from parties preparing ANPRM comment submissions or evaluating the regulatory status of their platforms. Examples of work we handle include: CFTC comment letter drafting, event contract classification analysis, DCM core principle compliance, prediction market licensing strategy, and federal preemption counseling.

Source: CFTC Press Release 9194-26, "CFTC Seeks Public Comment on Advanced Notice of Proposed Rulemaking Relating to Prediction Markets," March 12, 2026. https://www.cftc.gov/PressRoom/PressReleases/9194-26. Confirmed April 16, 2026.

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